- Cardano (ADA) is holding at a key support level, with spot buyers showing strong accumulation that could trigger a rally toward $1.
- However, declining on-chain activity and bearish sentiment in the futures market raise doubts about sustained upward momentum.
After a strong rally that saw Cardano [ADA] climb over 9% in the past month, the altcoin now finds itself at a critical crossroads. Currently trading around a key ascending support line, ADA’s next move could decide whether bulls reclaim control—or if a deeper correction is on the cards.
In the last 24 hours, ADA shed 1.23% of its value, contradicting its recent bullish trend. However, technical analysis suggests this dip might be temporary. Historically, ADA has staged strong comebacks from this ascending support line, and if the pattern repeats, a 30% rally to $0.96 could be in sight. Momentum beyond that could even push the asset toward the psychologically significant $1 mark.
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Fueling this potential rally is a noticeable uptick in spot buying activity. According to data from Coinglass, more ADA is being withdrawn from exchanges than deposited—a bullish indicator that suggests traders are moving their holdings into private wallets, likely for long-term holding. In just the past week, $57 million worth of ADA was acquired, including $3.36 million in the last 24 hours alone. This marks the highest weekly spot purchase volume since early March.
Yet, not all signs point upward.
Despite spot buyers showing confidence, Cardano’s broader investor base seems to be shrinking. Data from Artemis revealed a significant drop in on-chain activity, with the number of active addresses falling by 40,000—from 60,600 on May 23 to just 20,600 now. This decline could reflect waning interest in Cardano’s ecosystem, a development that poses a risk to long-term price strength.
In the derivatives market, the bearish undertone is also visible. A Taker Buy/Sell Ratio below 1 (currently at 0.9531) confirms that more traders are shorting ADA than buying futures—another indication of weak sentiment.
Ultimately, ADA is caught between two crucial liquidity zones—$0.74 and $0.78. This range-bound movement highlights the uncertainty in the market, with a decisive breakout in either direction likely to set the tone for the coming weeks.
As spot buyers dig in and long-term holders accumulate, the question remains: Can their conviction overpower broader market skepticism and trigger ADA’s long-awaited run to $1?